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A large number of small, local companies competed with a small number of large,
global or national players. Within the waste management segment, the largest global
competitors were Waste Management Inc. and Republic Services. The service was
considered a commodity, so competition was based mainly on price. Waste Collection
was considered a commodity service, and so as competitors increasingly entered the
market, prices began to fall. Achieving operational efficiencies in this
challenging environment was difficult enough for global companies that benefitted
from significant scale economics, but was almost impossible for local companies.
Kingo planned to further expand his business by opening franchises in new cities,
while still maintaining a non-office-based model of work. But, before he could move
forward with his plans for expansion, Kingo first needed to address some challenges
regarding his operation.
While this system has allowed 1-888-JUNK-VAN to grow initially, information errors
and inefficiencies were now negatively impacting operations and increasing costs.
For example, simple administrative tasks (e.g., contacting helpers, going back to
the customers site to collect money) took up a lot of the drivers' time. Even
though some templates existed for drivers to send their information to the data
clerk, they rarely used them, so drivers' data consolidation was very time
consuming. Customer service quality was suffering, which damaged the company's
reputation. Errors in customer contact information, forgotten emails, manual
calculations and billing mistakes caused negative customer interactions.
Ironically, the most serious problems originated with the data clerk. On several
occassions, the clerk accidentally sent the wrong version of the database to the
morning operator, and as a result some jobs that were already booked no longer
showed in the database and did not make their way onto the spreadsheets used by the
drivers. Fixing the database was extremely time-consuming-it would take an entire
day to get the databse cleaned up, and meanwhile no new reservations could be taken
as there was only one live copy. The problem had to be fixed as soon as possible.
The business was too small to justify hiring a dedicated IT worker. The solution
had to be easy to implement and operate. Ease of use was also critical since his
staff did not possess very high IT skills, yet they would have to rely heavily on
the system on a daily basis. The solution also had to be flexible and robust enough
to handle revolutionary changes in the market or the business. Vendor support was
essential.
Advantages
Upgrading from MS-Works to MS-Access could be done within a relatively short time
and short budget.
Access could be installed locally on multiple computers or it could be installed on
a centralized server to be accessed remotely through the Internet and a secure
virtual private network (VPN).
No outside help is required for performing the local installations and the system
could be ready in a couple of weeks.
Disadvantages
This option would not allow for remote access, and so each instance of the database
need to be updated maually, every day.
Installing the MS-Access on a shared server would require hiring of technical
persons.
Custom Application
Advantages
Building a custom application would help to meet the business requirements and
provide a centralised database with a remote access.
Disadvantages
The initial build time and the upfront price did not consider any future changes or
adjustments that might be required.
There was no way to predict how much maintenance would be needed.
The quotes did not include data migration.
Custom-made software simply could not be seen beforehand.
Google Docs
Advantages
It was free for up to 10 user accounts with a nominal fee on a monthly or yearly
basis.
It could be implemented quickly and it was easy to use.
Migration to a Google Docs system could be done in a matter of a couple of weeks.
Disadvantages
As data was to be inputted into an online spreadsheet, it couldn't be cross-
referenced in the way it usually is in relational databases.
Entire data is visible in a single, very large form, which was not ideal.
Another downside was lack of formal customer support, the only available assistance
was through online blogs and forums.
A common concern was that users did not own the tools and resources used to store
sensitive company data, which raised some confidentiality issues, and made people
wonder what would happen if Google decided to suspend or even cancel the service.
Platform as a Service
Advantages
Disadvantages
Before opting for this option, it should be decided how much of a platform was
needed and how much was the budget.
Advantages
ERP Systems were built around a central database which can be accessed remotely and
capable to integrate several business processes including purchasing, sales,
customer service, finance, human resource.
Disadvantages